05 e3 market research swot_long range planning_lecture notes

Market Research, SWOT, Long Range Planning

Enterprise Strategy/AW/05

Arj Wignaraja

Approaches to Market Research

Secondary Data Collection

Internal Sources

External Sources

• Accounting records

• Marketing data

• Internet• Periodicals• Reports

Primary Data Collection

Observation

Surveys

• Personal• Mechanical

• Mail/e-mail• Telephone• Personal

Key Questions to Ask in a SWOT Analysis

Strengths Weaknesses

Opportunities Threats

Internal

External

Helpful Harmful

Once SWOT Factors Are identified, The Objective is to…

Strengths Weaknesses

Opportunities Threats

Internal

External

Helpful Harmful

Maintain, Build and Leverage Improve or Stop

Counter or MinimizeExploit and BenefitTOO SIMPLE A VIEW OF THE OPTIONS

• Strengths => Opportunities1. Matching

• Threats/Weaknesses => Opportunities /Strengths.2. Converting

• Minimize or Avoid. Ideally eliminate3. Remedying

Developing Strategies from a SWOT Analysis – 3 Options

SWOT Analysis for Sri Lankan Airlines

Strengths Weaknesses

Opportunities Threats

Internal

External

Helpful Harmful

"There is no reason anyone would want a computer in their home." - Ken Olson, president, chairman and founder of Digital Equipment Corp., 1977

"This 'telephone' has too many shortcomings to be seriously considered as a means of communication. The device is inherently of no value to us.“

- Western Union internal memo, 1876.

"The wireless music box [Radio] has no imaginable commercial value. Who would pay for a message sent to nobody in particular?" - David Sarnoff's associates in response to his urgings for investment in the radio in the 1920s.

"Television won't be able to hold onto any market it captures after the first six months. People will soon get tired of staring at a plywood box every night." - Darryl F Zanuck, 1946.

Predictions About the Future Can Always Come Back to Haunt You

What managers need is a picture of the way the world might be in a decade or two. They can then be in a position to evaluate technologies and strategies in terms of how well they fit in with the imagined future state. This picture of the future is known as a scenario.

Gap Analysis Has its Origins in the Rational Planning Model

Current Operations

Future Projects

Gap

Ultimate Objective

Obje

ctiv

e M

easu

rem

ent

Time

Profit $250M

Target growth rate

15%

Strategic target in 5 years

$503M

Sales target ?

Efficiency strategies

Intensive strategies

Diversification strategies

Strategies for Filling a Gap

Shell’s View of Energy Future 2050

Strategy in Practice: Chinese Auto Share of Developed Markets by 2020

Source: McKinsey Quarterly, July 2010